UK and EU Advance Talks on Seizing Frozen Russian Assets

The UK and European Union will advance talks on how to seize frozen Russian assets to jointly boost defense spending, as they seek ways to increase economic pressure on Vladimir Putin ahead of any peace talks to end his war on Ukraine.

Foreign Secretary David Lammy and the EU’s top diplomat, Kaja Kallas, will review “innovative initiatives” to collectively step up European defense funding and bolster military readiness in a meeting in London on Tuesday, the UK Foreign Office said. 

The talks will include how Europe ensures it has the right legal and financial cover to seize billions in Russian assets, according to people familiar with the matter. Progress is being made despite resistance from some European countries like Belgium and Germany who remain concerned that confiscation could breach the principle of a state’s immunity under international law and impact the euro, they said.

“It is not the United States that has raised consistent concerns about sovereign assets...it’s actually within Europe,” Lammy told the House of Commons on Monday. The change of administration in Germany may allow the country to shift its position on the issue, he said. 

Europe’s effort to dial up pressure on Russia comes ahead of another call between US President Donald Trump and Putin on Tuesday. The US is pressing for Russia to agree to a 30-day ceasefire that Ukraine has said it’s ready to accept. 

The EU, Group of Seven countries and Australia have frozen about $280 billion of Russian central bank assets in the form of securities and cash, mostly through the Belgium-based clearing house Euroclear. Sanctions imposed on prominent Russian individuals froze an additional estimated $58 billion in assets, including homes, yachts and private aircraft.

Lammy and Kallas will also discuss the EU’s proposal to allow member states to invest €150 billion of EU loans on defense hardware, which can be spent on weapons from some third countries like the UK, Norway and Switzerland, the people said. The UK wouldn’t have to pay into the fund, but would benefit from EU states placing orders with British defense firms. 

“It’s vital we upgrade our partnership with the EU and work together to bring an end to this war and deliver security of all of our citizens,” Lammy said in a statement. 

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